Governor signs school bond bill into law

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A pivotal piece of legislation, Assembly Bill No. 224 (AB224), is set to provide a critical financial lifeline to rural schools to replace aging buildings.   

With overwhelming support from the Nevada House and Senate, and signed into law by Gov. Joe Lombardo, AB224 aims to bolster the state’s capacity to fund crucial capital improvements for schools.

KELY 1230 AM / 98.5 FM Radio first reported on June 11 that the bill received the governor’s signature.

The bill mandates the State Board of Finance to issue general obligation bonds of the State of Nevada, totaling up to $100,000,000. These proceeds would be deposited into the existing Fund to Assist School Districts in Financing Capital Improvements. The director of the Office of Finance would then use these funds to make grants to school districts, specifically in counties with populations of less than 15,000. This targeted financial injection is designed to alleviate the severe funding constraints faced by numerous rural communities.

This legislative move comes as rural counties, such as White Pine County, have been grappling with significant obstacles in funding new school construction. A recent story in the Las Vegas Sun indicated that White Pine County’s “narrow economy and property tax base” are major impediments to funding. Local property taxes are typically the largest revenue source for school construction, but White Pine County is already at Nevada’s statutorily capped tax rate.

In Lincoln County, recent attempts to secure bonds for school construction were rejected by voters.

Further compounding these difficulties, an analysis by The Nevada Independent earlier this year highlighted that White Pine County is among 11 Nevada counties at or near the state’s maximum property tax rate, severely limiting their ability to generate revenue or secure bonds for capital projects. Even with a high sales tax rate – White Pine County has the third-highest in Nevada at 7.725 percent – the district falls “well short of the estimated $100 million cost for a new K-8 school.”

Adding to the complexity, White Pine County’s school district bonded for a high school in 1994 and cannot ask voters for more money until 2034, effectively boxing the district out of local funding mechanisms for nearly another decade.